Non-residents who obtain incomes by means of the rental of a property in Spain must file the Non-resident Income Tax. Find answer to some questions here.
Am I obliged?
It is common among non-resident the belief that they have no tax obligations in Spain because the “pay their tax for their worldwide income back home”.
It is certainly true that one has to pay tax for worldwide incomes in the country in which we have our tax residency.
However, in some cases, such as when the income comes from a property located in other country, there is liability in that country, which later on it may be deducted from the tax liability in our country.
There are treaties to avoid double taxation between all countries in the EU.
In practice, if you have a property in Spain and pay your worldwide tax in other EU country you first will have to declare and pay for your income in Spain and later advise of this payment in your annual tax return so that it is deducted there.
In Spain, non resident owners of properties have to file their tax for rental income quarterly.
Tax forms must be filed in April, July, Oct and January for the business in the previous three months.
The tax has to be filed individually by every owner of the property. This includes husband and wife if the property is owned by a marriage couple.
How much tax?
The Amount of tax is a percentage of the balance after deductible expenses have been offset.*
*Only EU residents have available the provision of tax deductible expenses.
In 2019 the tax rate is
For EU residents ( along with Island and Norway): 19%.
You can estimate your tax liability using our online tool here.
The tool also allows you to submit your figures to us if you choose to use our services.